The latest data on the state of the market has been published. I haven’t blogged the data for a little while as it doesn’t relay warrant comment.
But you can see from the graph, things have remained fairly static for the last three years – but improved from 2008/9. This represents the value of investments traded in the years to date for the last three years.
The interesting fact is that the average yield has tightened in the last month – meaning that prices have increased. It’s a slight increase and you wouldn’t bet your house on it.
There is still a lack of funds in the market from the Banks – but we are seeing some private equity – looking to put money back into property. Perhaps property prices have stabilised at a low ebb – and the market sees opportunities.
We don’t really expect to see a rise any time soon. I suspect that we are bobbing along the bottom – with prices fairly stable. Money, if you can get it is cheap. But if you have money you can get double-digit yield returns – which you certainly can’t get on deposit. And who knows, in the longer term prices might go up.
We would all tell you that it is a difficult market to read. We would all tell you that it is ‘challenging’. But, we are still here and going strong. It would just be nice to see a little bit of confidence in the sector…